Estonian economy set for growth

Investors looking to buy property in Estonia may be interested in news that Swedish banking group SEB has predicted economic growth to occur in the country in the next two years.

The reports could mean that Estonia may be eligible to adopt the euro in the maybe by 2011.

Reuters reported the bank as saying: "After falling by 14 per cent last year, Estonia's GDP will grow by two per cent in 2010 and five per cent in 2011.

"Our Estonia forecast assumes that in May or June, the country will get the green light to join the euro zone in 2011."

These new figures dwarf the previous prediction made be the banking group, who said last November that the economy would contract 0.3 per cent in 2010 before growing by four per cent the following year.

Under current European Union (EU) rules, any country wanting to join must reduce its budget deficit to within three per cent of its GDP.

If the country is able to meet the EU requirements it is likely to provide it with economic stability, something that would help make it more desirable for potential investors.

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